Martin Lewis put Jeremy Hunt in the hot seat this week over the Tories’ repeated claims that they are cutting taxes.
The Tories have said they are cutting taxes once again – after introducing a historic tax burden in the cost of living crisis – through its two percentage point cut in National Insurance, from 12% to 10%, which came in this month.
However, this claim has been heavily scrutinised by experts – including Lewis.
The Money Saving Expert questioned the chancellor on his ITV programme, The Martin Lewis Money Show Live on Tuesday evening.
Hunt began the interview by explaining the cut to National Insurance, saying we cannot expect taxes will not return to pre-pandemic levels in”one go” – but he did not suggest when other taxes may come down.
The chancellor said: “This is about a £1,000, just under a £1,000, for the typical two-earner family, but we would like to go further as and when it’s affordable and responsible to do so.”
Lewis replied: “So you can say £1,000 for a two-earner family, or £450 each per person.
“Of course, that’s for people on slightly higher incomes.
“If someone earned between £12,500 and £26,000, then the fiscal drag, the fact that you have frozen the tax thresholds actually means even this year in isolation they will be worse off due to that tax.
“So there is a giving with one hand, and taking with the other hand.
“And if we looked over the entire time you’ve said you’re going to freeze the tax thresholds, then people will be thousands of pounds worse off.
“So we haven’t actually changed direction, have we? Maybe just a lessening of the rise.”
Hunt just claimed it was a “very big change of direction” and cited previous tax cuts introduced by the government, and the increase to the national living wage.
Hunt and Lewis’s exchange was later shared on X (formerly Twitter) by shadow chancellor Rachel Reeves on Wednesday, alongside the caption: “Martin Lewis is right.”
Labour has also previously called the cut to National Insurance a “raw deal”.
There is speculation that the government could introduce more tax cuts in the spring budget to try and woo voters, ahead of a possible general election later in the year.